Celebrate Freedom with 20% OFF on CAclubindia Pro Subscription. Use Code: FREEDOM20

Computing Breakven Sales

Others 176 views 1 replies

Mark

Accountant

23 Points Joined November 2012

I have tried to compute the Breakeven sales for a workshop, but my answer appears to be incorrect. I have used Goal Seek in Excel and get a higher breakeven sales. I have use fixed costs/the contribution margin, to compute my breakeven sales

It would be appreciated if someone would kindly assist me so I can see where I have gone wrong. I have attached sample data

Attached File : 945060 20191225150550 breakeven analysis and data analysis.xlsx downloaded: 36 times

Replies (1)

Mark

Accountant

23 Points Joined November 2012

resolved my problem in computing the estimated Net Profit using data tables.

My Breakeven was 100% but I was getting an incorrect answer when computing forecasted Net Profit based on increased sales data when using a data table.

My Contribution margin was 27.1111% (GP %)

To resolve the problem regarding the incorrect forecasted net profit , I set my variable costs to be Sales * (1-0.271111) and now I get correct forecasted net profit